assessment of employment-intensive investment strategies

Assessment of employment-intensive investment strategiesin refugee-hosting communities in Ethiopia

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Assessment of employment-intensive investment strategies in refugee-hosting communities in Ethiopia

August 2020


Copyright © International Labour Organization 2020 First published (2020)

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Table of contents

Acronyms 5 Executive summary 10

1.Background 13 1.1 PROSPECTS Partnership 14 1.2 ILO Vision 15 1.3 Objective of the report 16

2.Employment-Intensive Investment Programme (EIIP) 18 2.1 Description 18 2.2 History of the EIIP in Ethiopia 19

2.2.1 Rapid Assessment of Poverty Impact (RAPI) 20 2.2.2 Urban upgrading works: collaboration with the AAU 20 2.2.3 Emergency Recovery Programme (ERP) 20 2.2.4 Capacity building for labour-based training 21

2.3 The EIIP within PROSPECTS Partnership in Ethiopia 21 2.3.1 Protection and inclusion 21 2.3.2 Education and learning 23 2.3.3 Employment with dignity 23 2.3.4 Cross-cutting 23

3. Country assessment (the EIIP in PROSPECTS) 25 3.1 National policies and programmes 25 3.2 National institutions/agencies 27 3.3 Local institutions, agencies and training institutions 28 3.4 Refugee Communities 29

3.4.1 Camp profiles 29 3.4.2 Somali Regional State 30 3.4.3 Benishangul-Gumuz Regional State 30 3.4.4 Tigray Regional State 30 3.4.5 Afar Regional State 30

3.5 IDP Communities 30 3.5.1 Camp profiles 30 3.5.2 Somali Regional State 31 3.5.3 Legetafo 31

3.6 Challenges for refugee, IDP and host communities 34 3.6.1 Needs as identified by ARRA 34

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3.6.2 Locally identified needs 35 3.7 Identification, screening and selection of proposed EIIP interventions 36 3.8 Host Communities 38 3.9 Contractors 40

3.9.1 Enabling environment/delivery 40 3.9.2 Contractor identification and development 40 3.9.3 Technical training 40 3.9.4 Community contracting 41

3.10 Other potential partners and donors 41

4. Opportunities for EIIP partnerships and activities 42 4.1 Potential priority areas for introducing employment-intensive investment

approaches 42 4.2 Capacity building 42 4.3 Demonstration of employment intensive works 43

5. Risks for introducing employment-intensive investment approaches 45

6. Conclusions 48 Somali Regional State 48 Tigray Regional State 48

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Acronyms

AAU Addis Ababa University

ARRA Agency for Refugee and Returnee Affairs

BoFEC Bureau of Finance and Economic Cooperation

BoLSA Bureau of Labour and Social Affairs

CDD Community Driven Development

CFT Community Facilitation Team

CIG Common Interest Groups

CPC Community Procurement Committee

CPMC Community Project Management Committee

CRRF Comprehensive Refugees Response Framework

DFID Department for International Development

DRDIP Development Response to Displacement Impacts Project

DTPC District Technical and Planning Committee

DICAC Development and Inter-Church Aid Commission

DRM Disaster Risk Management

EIA Employment-Intensive Approach

EIIP Employment-Intensive Investment Programme

EMPIA Employment Impact Assessment

ERA Ethiopian Roads Authority

ERTTP Ethiopian Rural Travel and Transport Programme

ERP Emergency Recovery Programme

ESMF Environmental and Social Management Framework

ETB Ethiopian Birr (1 USD = 27.4 ETB)

FGDs Focus Group Discussion(s)

FM Financial Management

FA Financing Agreement

FAO Food and Agriculture Organization

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FPCU Federal Project Coordination Unit

FSC Federal Steering Committee

FTC Federal Technical Committee

GDP Gross Domestic Product

GoE Government of Ethiopia

IBRD International Bank for Reconstruction and Development

ICT Information and Communication Technology

IDPs Internally Displaced Person(s)

IFC International Finance Corporation

IGA Income-generating activity

IGAD Intergovernmental Authority on Development

ILO International Labour Organization

IOM International Organisation for Migration

IRC International Rescue Committee

IS Implementation Support

JAP Jigjiga Agro-Pastoral Livelihood Zone

JESH Jigjiga Export Slaughterhouse

KDC Kebele Development Committee

KIIs Key Informant Interview(s)

LB Labour-based

LVSR Low Volume Sealed Roads

LWF Lutheran World Foundation

M&E Monitoring and Evaluation

MIS Management Information System

MoA Ministry of Agriculture

MOU Memorandum of Understanding

NDRMC National Disaster Risk Management Commission

NGOs Non-Governmental Organization(s)

NRM Natural Resources Management

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NRC Norwegian Refugee Council

PMO Office of the Prime Minister

OAU Organization of African Unity

OCHA United Nations Office for the Coordination of Humanitarian Affairs

OSH Occupational safety and health

PDO Project Development Objective

PEPs Public Employment Programme(s)

PPP Public-Private Partnership

PSNP Public Safety Net Programme

RAPI Rapid Assessment of Poverty Impacts

RARDB Regional Agriculture Resource Development Bureau

RCCs Refugees Central Committee(s)

RF Results Framework

RPF Resettlement Policy Framework

RPCU Regional Project Coordination Unit

RSC Regional Steering Committee

RSDP Road Sector Development Programme

RSDPPB Regional Disaster Prevention and Preparedness Bureau

RTC Regional Technical Committee

RWRDB Regional Water Resources Development Bureau

SA Social Assessment

SAC Social Audit Committee

SDGs Sustainable Development Goal(s)

SMEs Small and Medium Enterprise(s)

SMFI Somali Microfinance Institution

SMP Social Management Plan

SNNP Southern Nations, Nationalities, and Peoples’

TVET Technical and Vocational Education Training

UN United Nations

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UNDP United Nations Development Programme

UNHABITAT United Nations Human Settlements Programme

UNHCR United Nations High Commissioner for Refugees

UNICEF United Nations Children’s Fund

URRAP Universal Rural Roads Access Programme

USD United States Dollar

VTCs Vocational Training Centre(s)

VSLAs Village Saving and Loans Association(s)

WAC Woreda Project Appraisal Committees

WATSAN Water and Sanitation

WB World Bank

WFP World Food Programme

WoFED Woreda Office of Finance and Development

WPCT Woreda Project Coordination Team

WSC Woreda-level Steering Committee

WTC Woreda-level Technical Committee

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This report is the result of visits to Afar, Benishangul-Gumuz, Oromia, Somali and Tigray regional states in March, May and August 2019 by John Clifton, ILO consultant.

The contribution of Partners is gratefully acknowledged, especially UNHCR regional personnel, who were involved in logistics as well as participating in site visits and meetings with regional stakeholders, institutions and refugee, IDP and host communities.

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Picture 1: Participants to the labour-based employment creation approach of ILO’s flagship Employment Intensive Investment Programme (EIIP) implemented in partnership with the Ethiopian Roads Authority (ERA) ©ILO


Executive summary

The Netherlands has signed partnership agreements with the International Labour Organization (ILO), United Nations High Commissioner for Refugees (UNHCR), United Nations Children’s Fund (UNICEF), World Bank (WB) and International Finance Corporation (IFC) for an initiative to provide jobs and education opportunities for host communities, Internally Displaced Persons (IDPs), refugees and other forcibly displaced persons. The key pillars of the Partnership, hereafter referred to as PROSPECTS or Partnership, include the Education & Learning, the Employment with Dignity, and Protection & Inclusion.

The ILO’s vision within the PROSPECTS Partnership concerns strengthening decent work in countries impacted by forced displacement, to mitigate stress and support access to labour markets, plus empowerment of host communities and forcibly displaced populations.

The objective of this report is to identify short- and medium-term interventions for the creation of jobs, infrastructure and other assets for host, IDP and refugee communities by means of interventions by the Employment-Intensive Investment Programme (EIIP), which adhere to ILO decent work and social protection. This report arises from visits to Afar, Benishangul-Gumuz, Somali and Tigray regional states (with Netherlands Embassy, UNHCR and IOM) in 2019, which undertook scoping for the refugees, IDPs and host communities in those regions.

Through the EIIP, the ILO supports member countries in the design, formulation, implementation and evaluation of policies and programmes that are aiming to address unemployment and underemployment by means of public investment, typically in infrastructure development and environmental works. The key strategy of the programme is the use of employment-intensive and local resource-based approaches for the construction and maintenance of public assets in a range of sectors. Implementation modalities range from direct employment of individuals to engaging small and medium enterprises (contractors and consultants) and communities to undertake public works. In doing so, the EIIP gathers not only public institutions, but also local communities, civil societies and private enterprises. Planning of such infrastructure investment programmes considers life-cycle costs of usage and maintenance, as well as job creation and environmental sustainability. In the short term, the EIIP creates entry points into the formalization of employment through job creation schemes, which offer immediate decent job opportunities and income generation, serving to extend social protection in the informal economy. In the long term, the infrastructure built through labour-based approaches becomes an asset that stimulates the economy and generates local multiplier effects. Furthermore, the skills acquired through the construction works, thanks to adequate training approaches using international standards, improve not only the employability of workers for subsequent jobs, but also contribute to the development of local private contractors through Public-Private Partnership (PPP), particularly for Small and Medium Enterprises (SMEs).

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The ILO has collaborated with the Government of Ethiopia for more than 30 years in aspects of the EIIP as well as in the rapid assessment of poverty impacts, urban upgrading works, the Emergency Recovery Programme (ERP) and capacity training for a labour-based training centre.

There are three potential entry points for EIIP interventions – policy, institutional and project levels.

On the policy level, the EIIP supports the development of regulations, policies and programmes, as well as concrete measures to promote the use of local resources, making use of the sectorial Employment Impact Assessment (EMPIA) tool, which quantifies both the direct and non-direct employment impacts of the investment. This will be facilitated by the research on local materials and capacity building of SMEs.

On the institutional level, the EIIP supports development and capacity building for the implementation of employment-intensive investment strategies and programmes with both the public sector (labour ministries, public works, ministries of rural and local development, local governments and communities) and the private sector (local contractors and engineering firms).

On the project level, the EIIP supports the demonstration and implementation of projects, evaluates the impact of employment-intensive investment strategies, and provides technical support to governments and donors to increase the impact of public investments and enhance decent working conditions.

Given that national policies are broadly supportive of the EIIP approach, EIIP interventions under the PROSPECTS Partnership will concentrate upon institutional and project levels.

These actions, when in operation, will be bottom-up and community-based. In face of Africa’s rapid population growth, particular attention is paid to areas such as the first entry of young people to the labour market, and the equal access by women to wage employment.

The management of safety and health is challenging because of variations in location, technology, climate, culture and values. However, accidents and health problems can be prevented. The ILO is committed to promoting occupational safety and health (OSH) in the industry. The risks involved with infrastructure works go beyond OSH. For example, not paying attention to labour issues and practices such as fair recruitment, wage setting, social security and insurance, and rights of association may lead to abuse and the exploitation of workers. Where relevant labour regulations and decent work practices are not applied, the introduction and up-scaling of EIIPs may be jeopardized. The EIIP makes every effort to safeguard basic labour standards and gives guidance on how labour standards and working conditions should be integrated into labour-based works. Social protection is an essential component of the ILO’s Decent Work Agenda. One dimension of social protection is to ensure a basic level of income security for all. The EIIP has often introduced social security and accident insurance through country-level operations. In addition, Public Employment Programmes (PEPs) can enhance the income security of working-age people and their

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families. The EIIP has contributed by providing its expertise in designing PEPs to ensure that this objective is achieved. Normally, special conditions of contract are introduced to cover issues such as conditions of employment, health and safety, workplace facilities etc.

Needs have been identified by ARRA at the national level and at local levels during visits to refugee, IDP and host communities in Afar, Benishangul-Gumuz, Oromia, Somali and Tigray regions. Identified interventions have been subject to detailed screening criteria, resulting in a short list of potential interventions for each of the four states. From this short list, two interventions (in Somali and Tigray regional states) have been proposed as initial demonstration sites for Year 1 of EIIP activities under PROSPECTS Partnership implementation (September 2019 to August 2020), in addition to complementary support to business entrepreneurship and management during the second half of Year 1. Training of trainers, institutional capacity building and technical training will be key components of the proposed EIIP interventions.

While it would be an overstatement to suggest that the infrastructure produced by the proposed EIIP interventions is simply a bi-product of activities intended to promote decent work, higher income levels, employment generation and capacity building, it is accurate to maintain that the infrastructure was selected partly to maximize training, capacity building and employment potential, at the same time providing a manifest service to the beneficiary catchment area.

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Picture 2: Civil engineers train on ‘road construction and maintenance’ as part of the ILO’s flagship Employment Intensive Investment approach ©ILO


1. Background The world is witnessing the highest levels of displacement on record. In recent years, the forced displacement crisis has increased in scale and complexity. There were more than 68.5 million forcibly displaced persons, of whom about 28.5 million were refugees and asylum-seekers (UNHCR, 2019) including 2–3 million in Ethiopia.

Eighty-five percent of the world’s displaced people are in developing countries. As displacement has become increasingly protracted, the responses are becoming more focused on durable solutions to support more dignified, inclusive and comprehensive programmes for refugees and the communities that host them. Self-reliance and empowerment need to be facilitated, and social cohesion needs to be strengthened. While forcibly displaced persons face specific vulnerabilities (including psychological trauma, lack of opportunities, protection risks, etc.), host communities also struggle to pursue their own development efforts in an environment that has been transformed by a large flow of newcomers. Therefore, more economic opportunities, associated with improved access to jobs and services (such as education and some protective services) are key to the successful management of such situations – for both forcibly displaced persons and host communities.

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Picture 3: Millennium IDP camp-gathering in Dire Dawa. ©ILO


1.1 PROSPECTS Partnership

Improving prospects for forcibly displaced persons and host communities

Benefiting from a four-year time horizon (2019–2023) and financially supported by the Ministry of Foreign Affairs of the Netherlands, the Partnership brings together five UN agencies (IFC, ILO, UNHCR, UNICEF and the World Bank) in their efforts to develop a new paradigm in responding to forced displacement crises, particularly through the involvement of development actors. The Partnership hopes to transform the way governments and other stakeholders, including the social partners and the private sector, respond to forced displacement crises, by fostering an enabling environment for socio-economic inclusion, improving access to education and protection for vulnerable children on the move and strengthening the resilience of host communities. This initiative is moving from a purely humanitarian approach to an intervention along the humanitarian-development nexus.

The Partnership will focus on three broad areas (pillars) that are critical for refugees and IDPs to overcome their specific vulnerabilities and for host communities to pursue their own development agenda in a transformed environment in Education & Learning, Employment with Dignity, and Protection & Inclusion, with a view to pursuing sustainable and integrated approaches. Each partner institution will contribute in areas where it has a comparative advantage.

The approach of PROSPECTS aims to join the Partners’ efforts to develop a new paradigm in responding to forced displacement crises through the involvement of development actors. It aims to help transform the way governments and other stakeholders, including the private sector, respond to forced displacement crises. It will be grounded on results-based and country-led approaches (bottom-up). The Partnership will provide a platform for demonstrating the benefits of innovative approaches that can enhance impact on the ground. It will aim to leverage or amplify existing programmes funded through each organisation’s own resources, and will provide a platform for mutual learning. Synergies are expected to strengthen strategic coordination, and, in partnership, the six institutions are expected to leverage their comparative advantages and expertise to achieve over-arching objectives.

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Expected results of the Partnership will include:

Reduced number of refugees and IDPs dependent on humanitarian assistance for their subsistence;

Increased amount of private investment in targeted refugee and IDP hosting areas;

Enhanced enabling environments for inclusive and job-rich labour markets and entrepreneurship, underpinned by decent work principles (Goal 8 of the Sustainable Development Agenda);

Improved education outcomes for vulnerable children in refugee and IDP hosting areas (SDG 4).

1.2 ILO Vision

Multi-annual/multi-partner programme between the Government of the Netherlands, ILO, IFC, UNICEF, UNHCR and the World Bank

The ILO’s vision within the Partnership is to strengthen decent work in countries impacted by forced displacement, to mitigate stress factors at all levels and to support inclusive socio-economic enablers for access to labour markets and the empowerment of host communities and of forcibly displaced populations.

Access to employment and livelihoods has emerged as the bridge between humanitarian action and development cooperation, and the ILO continues to support critical response programmes, anchored in its comprehensive policy framework, namely “The guiding principles on the access of refugees and other forcibly displaced persons to the labour market”, and the Employment and Decent Work for Peace and Resilience Recommendation, 2017 (No. 205).

The ILO views its contribution as part of an integrated offer of assistance to member states providing services to host communities, refugees and other forcibly displaced persons. An ILO-UNHCR Memorandum of Understanding (MOU) signed in 2016 and subsequent Joint Plan of Action clearly sets out how both agencies work together, for example, provision by the ILO of capacity-building to UNHCR’s livelihoods officers, and collaboration within the Comprehensive Refugees Response Framework (CRRF) in Ethiopia. In the area of fragility and peacebuilding, the ILO works extensively with the WB and the IFC to monitor social safeguards, skills and working conditions for investment programmes that create jobs and economic growth. Examples are the Jordan Compact, the Jobs Compact in Ethiopia and the joint IFC/ILO Better Work programme. There is a long-standing collaboration with UNICEF on child labour prevention and elimination and social protection. In addition, current collaboration in Lebanon and Jordan is also expanding into joint interventions for adolescents on school-to-work transition.

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Key elements of the ILO contribution to each of the pillars include:

1.3 Objective of the report

The objective of this report is to identify short (starting in 2019) and medium-term (2020–2023) interventions to create jobs and assets for both refugees and their host communities through public investment, mainly in infrastructure works and improving the environment.

The assessment has looked at: i) local infrastructure and community asset development needs and priorities in the target areas, in various sectors such as infrastructure development, natural resource management, environment, agriculture; ii) potential scope and technical areas of possible EIIP interventions to increase employment through public investment; iii) policy environment and capacity building needs of regulating and local implementing bodies (local governments and technical training institutions , for example) 1

and potential partners within and outside the PROSPECTS partnership for joint implementation of strategies and programmes.

The assessment also looked at measures required to mainstream and/or strengthen the employment-intensive approach in national public investment programmes. The assessment has been participatory and consultative and has been carried out around a review of the

Further details on TVET institutions and courses available are listed in various studies e.g.: Technical and 1

Vocational Education and Training in Ethiopia, IGC International Growth Centre, Feb. 2013 www.theigc.org/wp-content/uploads/2014/09/Krishnan-Shaorshadze-2013-Working-Paper.pdf; TVETs – Profile Assessment in Pastoral Areas of Ethiopia (Prime Sub-activity Report), USAID May 2014 www.prime-ethiopia.org/wp-content/uploads/2015/06/TVET%20Profile%20Report.pdf. See also Annex 1 Consultation with institutions under the Somali Regional State at the Bureau of Finance and Economic Planning (BoFED), 8 Mar. 2019.

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Graph 1: ILO contribution to each of the pillars ©ILO

http://www.theigc.org/wp-content/uploads/2014/09/Krishnan-Shaorshadze-2013-Working-Paper.pdf


http://www.prime-ethiopia.org/wp-content/uploads/2015/06/TVET%20Profile%20Report.pdf



current situation in the target areas and self-assessment processes. It was also a broad consultation to validate, expand and improve the range of information collected.

The assessment has resulted in a proposed activity plan and includes:

Capacity building of local and national authorities, contractors, training institutions, and communities to introduce, demonstrate and mainstream employment-intensive investment approaches to create jobs for refugees, IDPs and their host communities;

Demonstration of employment-intensive works to generate decent employment through public works and introduce the approaches;

Proposed partnerships (to apply employment-intensive investment approaches) with the Partners and with Government Agencies and other international financial institutions (IFIs) at national and local level, and/or other donors with the overall objective of increasing the employment content of investments.

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2. Employment-Intensive Investment Programme (EIIP)

2.1 Description

Through the EIIP, the ILO supports member countries in the design, formulation, implementation and evaluation of policies and programmes that are aiming to address unemployment and underemployment through public investment, typically in infrastructure development and environmental works. The key strategy of the programme is the use of an employment-intensive and local resource-based approach for the construction and maintenance of public assets in a range of areas such as road construction and upkeep, water and drainage, irrigation infrastructure, reforestation, and soil conservation. Implementation modalities range from direct employment of individuals to engaging small and medium enterprises (contractors and consultants) and communities to undertake public works. Planning of such infrastructure investment programmes considers life-cycle costs of usage and maintenance, as well as job creation and environmental sustainability. In the short term, the EIIP creates entry points into the formalization of employment through job creation schemes, which offer immediate decent job opportunities and income generation, serving to extend social protection in the informal economy. In the long term, infrastructures built through labour-based approaches become assets that stimulate the economy and generate local multiplier effects. Furthermore, the skills acquired through the construction works, thanks to adequate training approaches using international standards, improve not only the employability of workers for subsequent jobs, but also contribute to the development of local private contractors through PPP, particularly for SMEs.

The EIIP always works to produce public assets and generate employment in local communities. The programme has been implemented in more than 60 countries in Africa , 2

the Arab States, Asia and Latin America. Over the last ten years, the programme has implemented about $300 million worth of development cooperation projects, mostly in Africa and Asia. Impact studies show that well-designed EIIPs can boost immediate job creation, with a particular focus on youth and women, and can generate a longer term economic, social and environmental impact through the assets established. In the short term, immediate effects resulting from the programme’s job creation activities provide much needed cash income to households that lack income-earning opportunities or rely on informal work and subsistence farming. The income-generating activities often have a multiplier effect through an increased spending on goods and services in the surrounding areas. In the long term, the assets created, if well maintained, contribute to local development of the areas concerned and increased performance of economic sectors.

In Africa, EIIP is currently active in Cameroon, Comoros, Cote d’Ivoire, Ethiopia, Gambia, Ghana, Equatorial 2

Guinea, Madagascar, Mauritania, Mozambique, Rwanda, Sierra Leone, South Africa, Tunisia, Somalia, Sudan, Tanzania, Uganda, and Zambia. EIIP projects identify priority areas with a holistic approach contributing to integrated outcomes, aligning with the national development strategies of each country. Historically in Africa, the EIIP has been instrumental in addressing food security through improving agricultural productivity, providing works for refugees and migrants as well as local communities, and peacebuilding through supporting recovery programmes, among others. For detailed information on EIIP projects, please see: http://www.ilo.org/eiip

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http://www.ilo.org/eiip


On the policy level, the EIIP supports the development of regulations, policies and programmes, as well as concrete measures to promote the use of local resources, utilizing the sectorial Employment Impact Assessment (EMPIA) tool, which quantifies both the direct and non-direct employment impacts of the investment. This will be facilitated by the research on local materials and capacity building of SMEs. In face of Africa’s rapid population growth, particular attention is paid to areas such as the first entry of young people to the labour market, and the equal access by women to wage employment.

The management of safety and health is challenging because of variations in location, technology, climate, culture and values. However, accidents and health problems can be prevented. The ILO is committed to promoting occupational safety and health (OSH) in the industry. The risks involved with infrastructure works go beyond OSH. For example, not paying attention to labour issues and practices such as fair recruitment, wage setting, social security and insurance, and rights of association may lead to abuse and the exploitation of workers. The EIIP makes every effort to safeguard basic labour standards and gives guidance on how labour standards and working conditions should be integrated into labour-based works. Social protection is an essential component of the ILO’s Decent Work Agenda. Normally special conditions of contract are introduced to cover issues such as conditions of employment, health and safety, workplace facilities etc.

2.2 History of the EIIP in Ethiopia

The ILO and Government of Ethiopia (GoE) have many years of collaboration, going back to the 1980s, in the area of employment-intensive investments. The ILO has supported the government in introducing the application of a well-designed employment-intensive approach (EIA), developing planning and implementation tools, capacity-building interventions particularly relating to technical training institutions, and most recently, promoting partnership between the government and emerging entrepreneurs in the delivery of road works.

Between 1981 and 1987, the ILO assisted the Ethiopian Transport and Construction Authority in establishing labour-based rehabilitation brigades. The technical assistance component of this work was funded under WB road sector credits. The results of this experience were very positive and received strong support from both the Ethiopian government and the WB.

In 1997, the ILO participated in the preparation of a road improvement project in Tigray and South Wollo regions. The project was financed by the Italian government with technical assistance given by the ILO. Capacity building of the Regional Rural Roads Authorities responsible for the road improvement works was an important element of the project, which also served as a testing ground for the introduction of labour-based routine maintenance by local contractors.

In 2002, the ILO Sub-Regional Office in Addis Ababa, in collaboration with the EIIP, facilitated the development of the implementation manuals of the Ethiopian Rural Travel and Transport

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Programme (ERTTP) and reviewed and appraised their Phase One activities. The Department for International Development (DFID) in the United Kingdom and Ireland Aid provided funds to support the execution of the programme. The purpose of the programme was to increase poor people's access and mobility by developing and testing a methodology for managing travel and transport interventions in selected woredas (or districts), in all eight regions of the country. Other ILO initiatives include:

2.2.1 Rapid Assessment of Poverty Impact (RAPI)

In Ethiopia, the impact of the employment-intensive investment approaches and other development interventions for poverty reduction are not sufficiently documented. To address the lack of a methodology for the assessment of poverty impact, the EIIP developed procedures to provide information on poverty reduction resulting from employment-intensive rural infrastructure development programmes and projects. This has led to the development of the Rapid Assessment of Poverty Impact (RAPI) methodology, a more rapid survey method to assess poverty reduction. The ILO carried out a field test of the RAPI methodology in Tigray, Ethiopia as part of the rural roads project under the Emergency Recovery Programme. 3

2.2.2 Urban upgrading works: collaboration with the AAU

The Faculty of Technology of the Addis Ababa University and the ILO collaborated on a programme to introduce labour-based technology into the curricula at undergraduate and postgraduate level. In 2002, at the request of the Amhara regional government, the ILO (EIIP) provided technical assistance to the formulation of a programme to adopt the use of a labour-based approach in the provision of infrastructure in the urban sector.

2.2.3 Emergency Recovery Programme (ERP)

The Government of Ethiopia, with funding from the WB, implemented an Emergency Recovery Programme (ERP) to reinstate the infrastructure destroyed or damaged during the Ethiopia-Eritrea War (1998–2000). The two-year Partnership involved the emergency improvement of rural roads in the Tigray region. The ILO was commissioned in March 2003 to provide consultancy services for the construction supervision of approximately 500 km of rural roads. The ILO was also responsible for training and building the capacity of government staff and local private contractors.

The ILO is also providing advisory support and mentorship to mainstreaming Low Volume Sealed Roads (LVSR) technology in the technical training institutions in the road sub-sector. 4

This was undertaken in the period 2003–2005. For further details, reference may be made to: Rapid Assessment of 3

Poverty Impacts (RAPI); Elaboration of a Rapid Survey Method of Assessing the Poverty Reduction Impacts of Pilot Employment-Intensive Projects; Laura Murphy, ILO Development Policies Department: Technical Note 5 www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_policy/---invest/documents/instructionalmaterial/wcms_asist_6880.pdf

This ILO support has been made available to all states in Ethiopia where URRAP is operational.4

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2.2.4 Capacity building for labour-based training

Through the EIIP, the ILO has been supporting the establishment and strengthening of technical training centres under the Ethiopian Roads Authority (ERA) since the early 1980s. As part of this, the ILO supported the development of a comprehensive Training Manual for Labour Based Bituminous Surfacing of Low Volume Roads in 2013, followed by a training of trainers in 2015. The ultimate goal was to provide regional road authorities a cost-effective and labour-intensive option for upgrading gravel roads constructed under the Universal Rural Roads Access Programme (URRAP) and other low volume roads, thereby promoting rural development and alleviation of poverty through the provision of reliable and all-weather access to rural communities. 5

In addition, the ILO conducted a Training of Trainers course on soil and water conservation, relating to road works, targeting technical training institutions of the Ethiopian Roads Authority (ERA), as well as engineers and technicians from regional road authorities. The course was conducted in 2015, and its main objective was to mainstream environmental protection, in particular soil erosion prevention and control in the upper-catchment areas, in the delivery of road infrastructure.

2.3 The EIIP within PROSPECTS Partnership in Ethiopia

The ILO’s integrated approach aligns with the three pillars of the Partnership programme – Protection, Education and Work, and the ILO strategy will ensure that the three pillars are mutually supportive and reinforcing.

2.3.1 Protection and inclusion

ILO interventions under this pillar will focus on adjusting and implementing national governance frameworks, with a view to realizing international labour standards, decent work principles and inclusive labour market and social protection access for all workers, and to reduce informality. Anticipating close collaboration with Partners under this component, the ILO will bring together relevant ministries, government departments and authorities,

Increasingly scarce gravel deposits, coupled with the high cost of routine maintenance and environmental 5

degradation, have caused road agencies to seek alternative surfacing solutions for low volume roads (which, in Ethiopia, supports delivery of URRAP) and road infrastructure development in urban and peri-urban environments as part of the government’s development agenda for reduction of unemployment and poverty. To this end, sections of Single Surface Dressing using labour-based methods have been undertaken in Ethiopia, as well as two Otta Seal sections using a variety of natural and crushed aggregates with good results. The ILO is promoting the extensive use of local resources as it optimizes the creation of employment opportunities to the unemployed, creates a conducive environment for wider skills development and encourages the participation of emerging entrepreneurs in the local development process. In this regard, the ILO has widened the application of labour-based methods and accumulated a wealth of knowledge on the construction and sealing techniques of low volume roads. In order to develop local capacity for constructing LVSR using labour-based methods, the GoE has requested the ILO to assist with the production of training material aimed at local contractors and consultants, taking advantage of the in-country and extensive regional and international experience in the field. For greater detail, reference should be made to: Ethiopian Roads Authority: Bituminous Sealing of Low Volume Roads using Labour Based Methods: Training Manual, International Labour Office, Country Office for Ethiopia and Somalia, Addis Ababa, Ethiopia, June 2013.

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representative organizations of workers, employers and civil society, as well as other partners, to consider the adaptation and/or formulation of relevant policy responses and national action plans and strategies informed by the ILO’s refugee policy framework. This will include assistance for the implementation of related policy measures, for example, work and business permits, in line with economic, sectoral and regional priorities of the programme countries. Aligned with the implementation of policy, legislative and regulatory frameworks, the ILO will support focused interventions to strengthen institutional capacity and coordination mechanisms at all levels. In conjunction with awareness-raising campaigns and action on the ground, the approach will ensure that labour market governance frameworks will make a difference to the lives of all workers and the functioning of enterprises at the micro-level.

In addition, technical assistance and support will be provided for the social partners and civil society wherever appropriate, to strengthen outreach and organizing activities to host communities and forcibly displaced persons, to be more inclusive, and to frame empowerment strategies that will ensure these workers have voice and agency. Particular attention will be placed on the empowerment of women and girls, as they play a critical role in promoting peace, enabling recovery and building resilience within their communities.

Further action will aim to increase the access of forcibly displaced persons and host communities to social protection, including social security. For example, working closely with other Partners, the ILO will aim at rationalizing cash transfers within any national frameworks in place, and also at offering innovative solutions for protecting targeted populations against risks to which they are exposed in the workplace.

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Picture 4: Thirteen civil engineers and ERA instructors during the Labour-Based Technology course in Ginchi, Ethiopia October-November 2019. ©ILO


2.3.2 Education and learning

Measures under this pillar will work with training institutions, public employment services and public and private/non-profit institutions that implement labour market programmes. The ILO expects to join with other Partners on ensuring that young people coming out of education can acquire marketable skills for either employment or entrepreneurship and self-employment. Interventions will also include capacity building and technical assistance to private and community contractors for employment-intensive investment strategies and microfinance institutions, business service providers, skills training institutions and companies that can have a transformational influence on value chains and labour markets.

2.3.3 Employment with dignity

Under this pillar, at the macro-level the ILO will promote governance frameworks, policies and institutional implementation capacity that can create an enabling environment for decent work and job-rich, sustainable local economic growth. At the meso-level, activities may include supporting relevant institutions and private actors that have a systemic influence on the functioning of those markets that involve affected host communities and forcibly displaced persons. At the micro-level, interventions would benefit host communities and forcibly displaced persons, firstly through immediate job creation in public works and resulting improvements in public infrastructure and the environment. Further benefits would be targeted training and employability enhancement, training on labour rights, intermediation, business and financial services to improve the capacity of these populations to integrate effectively into labour markets, as well as the capacity of market actors and the private sector to absorb more labour of displaced populations.

2.3.4 Cross-cutting

ILO cross-cutting actions across all three programme pillars, involving the different Partners as relevant will include:

Strengthening the capacity of government, social partners and other relevant actors for social dialogue and partnership. All components of the ILO programme require strong social dialogue that reaches out to a broad range of actors, especially in developing, implementing and monitoring effective policies.

Ensuring that particular attention is paid to the needs and expectations of women, youth and people with disabilities in refugee, forcibly displaced and host communities. The ILO will reinforce outreach activities to women and youth in refugee, other forcibly displaced and host communities to strengthen access of these populations to livelihoods, decent work opportunities and training.

Strengthening social cohesion and integration, contributing to long-term social stability and security. Targeted efforts will be made across all areas of action to address the social and cultural integration of refugee and other forcibly displaced populations into host communities, as well as encouraging greater understanding and acceptance on the part of the national population of forcibly displaced communities.

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Supporting evidence-based policy-making and interventions, as well as enhancing advocacy, awareness-raising. Rapid assessments and surveys based on empirical evidence are critical. Data collection, evidence-based analysis and effective dissemination will be undertaken in collaboration with Partnership members and inform all policy interventions. This area of work will also contribute to the further development of the knowledge management platform.

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Graph 2: Comparative advantage of each PROSPECTS partner. ©ILO


3. Country assessment (the EIIP in PROSPECTS)

3.1 National policies and programmes

Ethiopia has achieved relatively rapid economic growth and experienced a marked improvement in the social well-being of its population since the late 2000s.. However, in spite of these positive developments, unemployment and poverty still remain a major challenge in the country. The GoE acknowledges that poverty, unemployment and social imbalance are the most pervasive problems that the country is currently facing and is committed to broad-based policy reforms and programmes to address these challenges. The government has continuously articulated the need to create sufficient employment opportunities to absorb the country’s growing labour force and has put in place various short, medium and long-term employment creation measures that are meant to improve the income and livelihood of both the rural and urban poor.

Under the Growth and Transformation Plan (GTP), Ethiopia aims to become a middle-income country by 2025. GTP1 (2011–2015) has been completed, and GTP2 (2016–2020) is currently being implemented (target growth rates of more than 11 per cent during GTP2) targeting key sectors (industry and agriculture) as drivers of economic growth and job creation. Aiming at 6

200 SDG targets, national development priorities have been identified under GTP2. 7

The GoE continues the nation’s commitment as a CRRF roll-out country – currently drafting a National Comprehensive Refugee Response Strategy (NCRRS) with key pillars including work and livelihoods, education (as part of social services) – and with an overall protection/social

GTP1 claims achievements in GDP growth, infrastructure and social development and capacity building but, 6

despite increased manufacturing output, GTP targets were not achieved, and the trade deficit actually widened. GTP2 has drawn upon lessons learned from GTP1 and was the subject of consultation processes at regional and state levels. The strategic pillars of GTP2 include: (1) continuing accelerated growth; (2) aiming at the attainment of the full economic production capacity and fostering the productive forces, increasing efficiency, productivity, quality and competitiveness to sustain growth; (3) transforming domestic investors into competent promoters of development; (4) fostering the development of the construction sector; (5) administering and managing rapid urbanization in the country in order to harness its contribution to growth; (6) expediting the development of human resources and technological capacity; (7) improving the Government’s implementation capacity and increasing the participation of the people in order to create democratic good governance; (8) bringing about the participation and competence of women and youth and ensuring they benefit from economic growth; (9) building a climate-resilient green economy.

(1) ensuring that the agricultural sector remains the mainstay of the nation’s accelerated economic 7

development; (2) expediting change in the economic structure by transforming manufacturing industry development; (3) enhancing the economy to its full economic capacity through increased focus on competitiveness, efficiency, productivity and quality; (4) correcting the imbalance between overall demand and supply; (5) fostering the development of the construction industry and project management capacity; (6) institutionalizing urban administration and management compatible with accelerated urbanization, industrialization and structural change; (7) creating an enabling environment for the mobilization of domestic investors; (8) providing support to human resources development through building technological capacity; (9) building a climate-resilient green economy; (10) eliminating rent-seeking behaviours and ensuring the predominance of a developmental frame of mind.

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protection consciousness. Ethiopia is striving towards becoming a middle-income country by 8

2025, and timely investment can capitalize on reforms and harness the power of refugees as a valuable resource. Major progress was made early in 2019 on the socio-economic integration of refugees in Ethiopia with the new Refugee Proclamation (No. 1110/2019) promulgated by the House of People’s Representatives. This provides the legal framework for the implementation of CRRF Pledges and this partnership. The Law also enables refugees to obtain work permits, access primary education, obtain driving licenses, legally register life events such as births and marriages, and use national financial services such as banking.

On a regional level, on 28 March 2019, Ethiopia signed the Intergovernmental Authority on Development (IGAD)’s Kampala Declaration on Jobs, Livelihoods and Self-Reliance for Refugees, Returnees and Host Communities in the IGAD Region. The Kampala Declaration stems from the March 2017 Nairobi Declaration (and action plan) on durable solutions for Somali refugees and the reintegration of returnees in Somalia. This is believed to enhance commitment by the Ethiopian government and ILO social partners in their engagement to providing jobs and livelihoods for refugees, returnees and host communities.

Lessons may be learned from the implementation of the Public Safety Net Programme (PSNP), which was established in 2005 with the objective of preventing household depletion and creating community assets. The programme has provided cash or food payments against public works which have built local infrastructure (such as terracing), operating in chronically food insecure woredas in the Afar, Amhara, Oromia, Somali, SNNP and Tigray regional states. 9

Under the various phases of the ongoing Road Sector Development Programme (RSDP) , 10

the GoE is currently implementing a flagship employment-intensive programme, the Universal Rural Roads Access Programme (URRAP). It was launched in 2011, with the objective of connecting about 18,000 kebeles (wards) to all-weather roads. In its first five years, from 2011–2015, the programme planned to rehabilitate some 72,000 km of all-weather rural roads, which was, by and large, achieved. This was part of the RSDP IV covering

PSNP is implemented by the Government of Ethiopia, supported by various IFIs including DANIDA, CIDA, EU, 9

Irish Aid, Royal Netherlands Embassy, SIDA, DFID, UNICEF, USAID, WB and WFP.

To address constraints in the road sector, mainly low road coverage and poor condition of the network, the 10

Government formulated the Road Sector Development Programme (RSDP) in 1997. The RSDP has been implemented over a period of 18 years and in four successive phases. A total of 118,553 km of physical works consisting of rehabilitation and upgrading of trunk and link roads, construction of new link roads, rural roads and district roads and maintenance of federal and regional roads have been carried out by the Ethiopian Roads Authority (ERA), Regional Roads Authorities (RRAs) and Woreda Road Offices (WRO) and the community and municipalities. The total disbursement over the 18-year period was ETB 218.7 billion. In addition to the physical works, a series of policy and institutional reforms were implemented in the sector, which enhanced the implementation capacity of road projects and the effectiveness of Road Asset Management. RSDP V comprises road physical works of 16,566 km by the Federal Government, consisting of 1,285 km rehabilitation of trunk roads, 577 km upgrading of trunk roads, 3,442 km upgrading of link roads, 6,050 km construction of link roads, 329 km of expressway roads and 5,063 km heavy maintenance. RSDP V also includes the construction of 8,060 km of rural roads and the construction of 90,000 km of woreda roads.

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http://www.globalcrrf.org/wp-content/uploads/2018/06/Nairobi-Declaration-25-March-2017.pdf


the period 2011-15. Under RSDP V, the government plans to construct over 100,000 km of rural roads through URRAP in five years (2016–2020). The construction and maintenance of roads will be implemented by emerging local entrepreneurs (both contractors and consultants) supported by the programme. The GoE through the Ethiopian Roads Authority has already trained some 1,000 small-scale contractors and 200 consultants to work on the programme. Employment-intensive techniques have been identified as the preferred methods of delivery.

Finally, the recently announced Investment and Jobs Creation National Committee, launched by the Prime Minister in August 2019, is expected to work “in sync” with the Doing Business Initiative and Committee and aims at “the creation of sustainable and decent work by aligning policies and institutional systems whilst also playing a leading role in securing and expanding investment and ensuring implementation of plans to increase investments and job creation”.

3.2 National institutions/agencies

The Agency for Refugee and Returnee Affairs (ARRA) has a mandate to support and 11

maintain the physical safety of refugees and takes the lead in coordinating and managing refugee programmes while availing land to establish camps.

Under the 2013 National Policy and Strategy on Disaster Risk Management, national and regional offices of the National Disaster Risk Management Commission (NDRMC) are responsible for guiding and coordinating humanitarian and longer-term response operations for IDPs. The national policy provides a framework of DRM measures including a decentralized approach, early warning and risk assessment, information management, capacity building and integration of disaster risk reduction into development plans. The NDRMC with partners IOM, UN Resident Coordinator’s Office and UNDP have established the Solutions and Resilience Working Group for IDP issues at national and regional levels. Other partners include OCHA and UNHABITAT.

There are multiple institutions at Federal Government level, which may be involved in the different components of the PROSPECTS Partnership support; those institutions most likely to be involved in the proposed EIIP component are shown below, i.e.

Ministry of Labour and Social Affairs Ministry of Agriculture Ministry of Transport

ARRA’s mandate includes: serve as a key government agency and representative on all matters of refugees and 11

asylum-seekers; conduct refugee status determination exercises and deciding on refugee status; establish refugee camps and managing the overall coordination of camp activities; provide physical protection and maintain the well-being of all people of concern; provide and coordinate basic and social service delivery to refugees; coordinate country-level refugee assistance programs; assist and facilitate NGO partners and other stakeholder interventions in the discharge of their activities; facilitate and undertake repatriation movements when the causes of refugee displacement are solved.

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Ministry of Public Service and Human Resource Development Ministry of Water, Irrigation and Energy Ethiopian Roads Authority Somali Regional State Road and Transport Bureau Ethiopian Road Fund Office

3.3 Local institutions, agencies and training institutions

Many of the Federal Government institutions listed above have regional representation in the form of Bureaus, some of which are provisionally identified as potential EIIP partners. TVET colleges have been established “to admit students who have completed secondary 12

education”. Training can be given in any appropriate language and through “regular or continuing programmes”, and this training is required to be practice-orientated. Such a mandate is a good fit with the proposed EIIP training and capacity-building approach.

However, it is not clear whether the requirement of completion of secondary education 13

might be a problem for potential inclusion of refugees under the proposed EIIP capacity-building activities. Moreover, these existing TVET colleges are unlikely to have the capacity 14

for such training at present. Initial activities would involve training of TVET trainers using the facilities at ERA’s Ginchi Training Centre, followed by training through TVET institutions in Somali and Tigray regional states, together with practical on-site training at demonstration sites. 15

Proclamation Nº 52/1998 to establish Vocational Education and Training Colleges of Somali Regional State: 12

Somali Regional State, Dhool Gaeta Art 2(5).

It is proposed that students who have completed secondary education might be trained in skills required by 13

supervisors, masons, electricians, middle level managers, etc.

IDPs or refugees without high school certificates could be trained as foremen by way of TVET if short courses 14

were available for them.

Further details on TVET institutions and courses available are listed in various studies, e.g. Technical and 15

Vocational Education and Training in Ethiopia, IGC International Growth Centre, Feb 2013, www.theigc.org/wp-content/uploads/2014/09/Krishnan-Shaorshadze-2013-Working-Paper.pdf; TVETs – Profile Assessment in Pastoral Areas of Ethiopia (Prime Sub-activity Report), USAID, May 2014, www.prime-ethiopia.org/wp-content/uploads/2015/06/TVET%20Profile%20Report.pdf. See also Annex 1 Consultation with institutions under the Somali Regional State at the Bureau of Finance and Economic Planning (BoFED), 8 Mar 2019.

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3.4 Refugee Communities

3.4.1 Camp profiles 16

Refugees live in camps, which are administered by ARRA, with financial and technical support from UNHCR and other agencies. Education, health and other services are provided by UNHCR implementation partners including international and national NGOs. 17

Camp residents have representational structures including a Central Committee and various sub-committees for special interests/issues (e.g. youth, women, sports and recreation, people with disabilities).

Table 1: Refugee Camp profiles

CampYear opened Population

Shelters built

Community- based structures

% population under 18

Ration cards issued

Refugees

Benishangul-Gumuz Regional State

Bambasi 2012 17 279 3 116 8 62 % 4 259HHs

Sherkole 1997 11 826 2 390 5 56 % 3 596HHs

Tsore 2015 14 123 1 194 6 58 % 3 762HHs

Somali Regional State

Sheder 2008 10 849 357 No info 56 % All

Aw Barre 2007 12 031 312 No info 56 % All

Kebribeyah 1991 14 413 1 901 No info No info No info

Tigray Regional State

Adi Harush 2010 10 599 2 084 No info 39 % 10 599

Mai-Aini 2008 11 718 2 435 No info 40 % 11 718

Shimelba 2004 5 953 1 901 No info 41 % 5 953

Hitsats 2013 9 763 1 333 4 41 % 9 753

Afar Regional State

Aysaita 2007 14 263 1 126 4 56 % 14 263

Barahle 2007 12 818 952 4 63 % 12 818

Sources: PAD1678: DRDIP – Development Response to Displacement Impacts Project in the Horn of Africa; 16

UNCR Camp Profiles 2018.

UNHCR partners include ARRA, AHA, OSD, EECMY, DCA, GOAL, DEC, OSD, NRC, NRDEP, MSF, ZOA, UNICEF, CVT, 17

JRS, HIS, LWF, SCI, RADO, GAIA, MCDOIOM, WFP, DICAC, RaDO, SEE, Jigjiga University, Ethiopian Red Cross, OIC-E, IRC and DRC.

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3.4.2 Somali Regional State

Three refugee camps in the Jigjiga area were visited in March 2019 – Kebribeyah (since 1991), Aw Barre (since 2007) and Sheder (since 2008) – and there are currently some 37,000 registered Somali refugees in the Jigjiga area, of whom about 13,800 belong to households that have been in camps since 2000 (i.e. Kebribeyah). Overall, 62 per cent of refugees are under 18 years of age; 53 per cent are women and girls.

3.4.3 Benishangul-Gumuz Regional State

There are six refugee camps in Benishangul-Gumuz Regional State, housing refugees predominantly from Sudan and South Sudan (with a few refugees from Great Lakes). Of these camps, three were visited in May 2019, i.e. Bambasi (since 2012), 55 km from Assosa, sheltering 17,279 persons (62 per cent under 18); Sherkole (since 1997), 45 km from Assosa, housing 11,826 persons (56 per cent under 18); and Tsore (since 2015), 27 km from Assosa, with 14,123 persons (58 per cent under 18).

3.4.4 Tigray Regional State

Four refugee camps in Tigray Regional State were visited in August 2019: Hitsats (since 2013), Adi Harush (since 2010), Mai-Aini (since 2008) and Shimelba (since 2004). These camps house Eritrean refugees totalling approximately 38,000 persons. Overall, 40 per cent of refugees are under 18 years of age; 40 per cent are women.

3.4.5 Afar Regional State

Two refugee camps in Afar Regional State were visited in August 2019: Barahle (since 2007) and Aysaita (since 2007). These camps house mainly ethnic Afar Eritrean refugees totalling some 27,000 persons. Overall, about 60 per cent of refugees are under 18 years of age; approximately 51 per cent are women.

3.5 IDP Communities

3.5.1 Camp profiles

Table 2: IDP Camp profiles

CampYear opened Population

Shelters built

Community- based structures

% population under 18

Ration cards issued

IDPs

Qoloji I 2016 ~38 000 (~6 500HHs)

No info No info >50% No info

Qoloji II 2017 ~40 000 (~6 900HHs)

No info No info >50% No info

Millennium Park 2017

7 000 18 (~12 20HHs) No info No info >50% No info

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18

3.5.2 Somali Regional State

There are reported to be more than 1.1 million IDPs in the region as a result of conflict and climate change (approximately 180,000 households), currently settled at various locations in the state. Almost all IDPs who have fled conflict in Oromia State do not wish to return due to perceived threat to life, and efforts are being made to seek resettlement in Somali region. 19

Two IDP camps were visited, Qoloji and Millennium Park. Qoloji comprises two adjacent camps 60 km west of Jigjiga. Qoloji I was established in 2016 and shelters approximately 38,000 persons (some 6,500 households). Qoloji II was established in 2017 and shelters around 40,000 persons (about 6,900 households). Although various potential resettlement areas (of varying viability) have been identified across the state, a Durable Solution Working Group continues to draft a plan for resettlement.

A limited number of IDPs have moved of their own accord to the Jigjiga urban area, which has also been identified as a potential resettlement area for some IDPs.

Millennium Park, Dire Dawa, was established in 2017 on the site of sports facilities in the town. More than 7,000 persons (some 1,220 households) remain in this site, which is a decrease from the reported peak of 13,000 persons in 2018. Recently, some 180 households (more than 600 persons) were transported to Babile/Siti, but it was found that poor facilities and shelter were available, such that the remaining families refuse similar resettlement.

3.5.3 Legetafo

Legetafo is one of the more advanced and well managed planned resettlement camps for 20

IDPs. The IDP resettlement site is separately located within Legetafo development zone, and the resettlement site has internal roads connected to the main urban (asphalt) roads. The resettlement area hosts around 523 households (more than 3,000 people) who were resettled in 2018 (including some 900 IDPs of working age), approximately 50 per cent male/female. It is not expected that there will be more IDP arrivals at this location. IDPs are 21

reported to have personal documentation.22

Previous livelihoods of the IDPs include pastoralism, agriculture and trading; some are currently working on horticultural activities in the immediate area. However, despite high

Population reduced from 13,000 in 2018.18

Most IDPs from Oromia are of Somali ethnicity, although they are third- or fourth-generation descendants of 19

the original Somali migrants. Most speak only Oromifiya and Amharic.

The Deputy Mayor has offered to make available copies of the municipal development master plans.20

Other IDP camps visited by the ILO in May 2019 (Qoloji I & II; Millennium Park, Dire Dawa) are not up to the 21

same standard – limited education and health facilities, minimal water supply, no adequate drainage, or poor quality shelters with inadequate waterproofing and lacking floors.

For example, an unemployment card attesting that unemployment is being provided to IDPs; some of the IDPs 22

have lost all their documents during the conflict and/or while they were displacing from Somali (Jigjiga and Erer) Regional State. There is reported to be skilled labour within the IDPs, but without documents the IDPs cannot compete for a job with the host communities.

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levels of unemployment, no IDPs wish to return to their regional locations. All shelters 23

(about 140 sq m) are constructed of timber frame covered with corrugated-iron sheets, and most have an individual latrine and electricity connection (for lighting). The shelters and facilities were constructed by individuals and volunteers from the host community. The IDP camp area has a clinic, water points, market buildings (unused) and a sports ground. However internal roads are unsurfaced, with insufficient provision for drainage, such that some IDP houses are subject to flooding.

Seed capital has been made available for five cooperative groups (each group comprising five persons – 20,000 Ethiopian Birr per person) against collateral (i.e. shelter), and agreements have been signed to receive and repay the loan from the government Small and Microfinance Entrepreneur Office.

Some shops have been constructed within the buffer zone of the IDP resettlement areas, and a market was intended for host and IDP communities. Nevertheless, the IDPs are not provided with sufficient food, and the seed capital has been used for food and other daily expenses. Most of the IDPs shops are empty. The assumption in siting these shops within the IDP camp seems to have been that customers would come from the town to purchase “speciality” goods not normally available in the Addis Ababa/Legetafo area, such as perfume, shoes, spices, cosmetics, blankets, etc. from the Somali Regional State (as some IDPs were selling in the Jigjiga area).

A primary school (grades 1 to 4) has been donated by a sympathizer. Older students 24

(grades 5 to 8) attend school in Legetafo town. Health centres in the town are also available to IDPs.

There is no reported tension between IDPs and host communities, and there is reported to be good communication between the communities.

IDPs complain that insufficient support has been forthcoming. 25

Some road works with masonry side-ditches were under construction in the resettlement area, e.g. near to the primary school but using skilled labour from the host communities. This type of work could be proposed realistically under EIIP, given the deficient surface water drainage in the resettlement camp areas.

An intention survey was carried out in 2018, and about 99 per cent of the IDPs stated that they did not want to 23

go back to where they were displaced.

A primary school was built and donated by Beyo Plc for the IDPs students ranging from grade 1 to grade 4. The 24

school does not fulfil all the requirements of a primary school, being without a clinic, offices or libraries for the teachers and students. Further classrooms could accommodate up to 100 students, which is a large number compared with the standard classrooms of a primary school.

Six government offices are working together towards the development of the IDPs, i.e. the Bureau of Labour 25

and Social Affairs, the Bureau of Women, Children & Youth Affairs, the Machinery Lease Office, the Oromia microfinance institution OCSSCO, SME office, and the Legetafo Town Mayor’s Office. In 2018, UN Habitat conducted a meeting with the Legetafo Town Mayor, after which the information requested by UN Habitat was delivered. Nevertheless, it is unclear if further response has been made.. No NGOs are supporting the IDPs.

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Table: 3 Situation in relation to basic services in camps.


3.6 Challenges for refugee, IDP and host communities

3.6.1 Needs as identified by ARRA

A List of possible intervention areas by the Netherlands Embassy was presented by ARRA (17 May 2019), i.e.

Focus Areas

Agricultural value chain development and private sector driven development are priorities for all.

1. Irrigated agriculture – leveraging water sources (Investment in Infrastructure). Cash crops!

2. Livestock sector development – cattle, goat, dairy, hides and skin, poultry – mainly feed and veterinary services.

3. Youth job creation – off-farm activities – urban job creation – SME development.

4. Enhancing private sector investments in refugee hosting areas; enabling business environment; FDI; domestic investors – scale up and new; support to private sector associations and chambers.

Outcome 1: increased job/self-employment 26

In contribution to the identified focus areas, ARRA has listed potential interventions in the Afar, Benishangul-Gumuz, Somali and Tigray regional states and in Addis Ababa.

Afar Regional State

Aysaita: livestock (goat and camel value chains); Awash river for irrigated food production; livestock cooperatives (feed, fattening, vet, services, marketing).

Berhale: mining (salt and gold value chains); area rich in national resources; investments in technology and technical support to local mining cooperatives.

Benishangul-Gumuz Regional State

Homosha: irrigated agriculture (high-value cash crops – sesame, nuts, soya beans); six rivers flow in the woreda; farmer cooperatives and growth SMEs (investment in irrigation infrastructure).

Bambasi: irrigated agriculture (high-value cash crops and agro-processing of mangos); Dabus river; enhancing private sector investments and farmer cooperatives.

ARRA priorities are listed for the states visited by ILO in 2019. ARRA priorities for Addis Ababa are: urban job 26

creation (wage and self); vibrant market; women-focused skill-based SMEs and wage employment (private sector scale-up).

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Tselemti: livestock value chain (cattle); Bogart breed (huge potential for export); youth agricultural SMEs (feed, AI, vet services, fattening, hides, skins, marketing).

Tahtay Adiyabo: agricultural value chain (cereals, cash crops, sesame); land available for irrigation and Tekeze river; huge irrigation investment, farmer cooperatives.

Asgede Tsimbla: urban job creation (wage and self-employment); private sector flourishing; youth-urban SMEs (wage employment).


Kebribeyah: urban job creation (wage and self-employment); active trade and services; urban SMEs (trade services and construction) and private investments for wage employment.

Aw Barre: livestock (camel and goat); slaughter house in Jigjiga and huge demand; water (bore holes), feed production, fattening, AI, vet services, marketing, hide and skins.

3.6.2 Locally identified needs

Challenges have been locally identified by sector, but it is important to recognize that while some issues are specific to a particular refugee camp community (e.g. camp roads in Kebribeyah camp), many issues identified below impact upon refugee, IDP and host communities in the various locations visited in Somali, Benishangul-Gumuz, Tigray and Afar regional states.

Issues specifically identified during consultations with IDP, refugee and host communities are shown below.

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3.7 Identification, screening and selection of proposed EIIP interventions The screening criteria for selection of proposed EIIP interventions under PROSPECTS Partnership: Outcome Area B – Employment Output 2 – Promote decent work and higher income levels as discussed below: 27

Table 4: Screening proposed EIIP interventions

Criteria Comments

Identification

Locally identified needs are broadly compliant with needs identified by ARRA, but local prioritization does not entirely comply with national priorities

Needs/problems locally identified and prioritized with reasonably clear appreciation of concept and scope of response interventionLocally identified needs compliant with and/or supportive of needs identified by ARRA

Screening – the proposed intervention should be… Proposed interventions in the first year of EIIP operations

are directly compliant with needs identified by ARRA and locally as regards urban works in Somali Regional State (Jigjiga/Kebribeyah) and supportive of such identified needs in the Tselemti area – see 3.6.1 Needs as identified by ARRA

compliant with and/or supportive of needs identified at national and local levels

within the available budget for year 1 EIIP activities under PROSPECTS Time and budget are a constraint for the first year of DP

EIIP activities – see 6. Recommendations and Action Planning and 7. Provisional Budgetpossible to complete proposed

activities during the timescale in year 1

offer potential for relatively large numbers of workers (directly and/or by rotation)

While a work site may offer potential employment to, say, 150 workers, this number will not be consistent during the entire construction period, fluctuating according to site needs and progress. Consideration will be given to “rotating” the work force at, say, three-month intervals should the number of applicants for employment exceed available work posts.

As noted in 3.6 above, agricultural value chain development has been identified by ARRA as a focus area to be 27

supported by infrastructure development through labour-intensive works. A public employment programme (EIIP) should yield rapid job creation, skills development and social cohesion while linking to and expanding on current partners community-driven public works.

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reasonably close to source of potential work force (host community, refugees, IDPs) to avoid transportation of large numbers of workers

Wherever possible, the unskilled and semi-skilled work force will be expected to walk to the worksite. Given that work is expected to be allocated using task notes, this implies that a constant working day of, say, eight hours will not usually be required.

practical for labour-based approach

Certain activities are inherently plant-intensive and thus not practical for maximization of employment (e.g. mass earthworks, asphalt road pavements)

offer a venue for learning marketable skills that may be gainfully applied after completion of the intervention

The nature of the works should offer the widest range of marketable skills for training (e.g. masonry and brickwork construction, steel fixing and concrete placement).

environmentally and socially benign

Category A projects to be avoided (which, under international agency requirements, require an ESIA and ESMP covering environmental, social and resettlement and indigenous peoples’ issues to be prepared. Thus any project involving major impacts upon these issues (e.g. major dam, river diversion or river crossing) will be ruled out. Preferably only Category C projects will be considered, i.e. minimal or no adverse environmental impacts (although environmental implications will be reviewed), no involuntary resettlement and no impacts on indigenous peoples.

providing infrastructure which offers a service to the widest possible “catchment area” and/or population

“Catchment area” includes social, agricultural and/or other economic activities which will benefit from improved infrastructure, e.g. improved rural access.

providing infrastructure that is plausibly within local capacity to operate and maintain

Arrangements are in place or will be established to ensure operation and maintenance (including budgets) at community/woreda or regional levels, as appropriate.

within the comparative advantage of ILO internationally and experience in Ethiopia

While ILOs international experience of EIIP implementation covers multiple sectors, Ethiopian experience is predominantly rural access over the past three decades

within areas of Ethiopia where DP partners are already established and operational Important practical point to facilitate progress by shared

logistics and to ensure complementarity of DP partners’

Criteria Comments

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While it would be an overstatement to suggest that the infrastructure produced by the proposed EIIP interventions is simply a by-product of activities in promotion of decent work, higher income levels, employment generation and capacity building, it is accurate to say that the infrastructure, while providing a manifest service to the beneficiary catchment area, has been selected in part to maximize training, capacity building and employment potential.

3.8 Host Communities One option considered for EIIP demonstration locations under PROSPECTS focused on locations that would be complementary to DRDIP interventions (i.e. within a 20 km radius of camps). To confirm identification (and design) of such interventions, it is proposed that the existing DRDIP consultation and implementation processes at regional and local (woreda and kebele) levels should be “shadowed” by EIIP and such conditionalities should be considered 28

for implementation in Year 2 and subsequently.

compatible with, supportive of and complementary to activities of DP partners in support activities under DP

logistics and to ensure complementarity of DP partners’ activities and added value of supportive outputs.

largely programmable during the dry season

Avoids delays to construction schedule (and associated costs) and maximizes time available for on-site training activities.

not involving transport of construction materials over long distances.

Sources of construction materials should be reasonably close to the intervention site to avoid high haulage costs and associated preparatory employment to be locally sourced (e.g. limestone/basalt for cobblestones; “sharp” sand and aggregate for concrete.

Criteria Comments

With appropriate amendment to accommodate different partners (eg SRRA).28

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Graph 3: Theory of change - Employm

ent Intensive Investment Program

me.


3.9 Contractors

The proposed EIIP component of PROSPECTS in Ethiopia would provide support to the private and public sectors (small contractors/SMEs) in building technical, managerial and financial capacity for construction of infrastructure works (e.g. roads, WATSAN, buildings, etc.). This support will cover the following thematic areas: 29

3.9.1 Enabling environment/delivery

Application of regulations or conditions of contract and EIIP, specific procurement systems compliant with national and international legislation and norms regarding wage levels, decent work conditions, productivity, etc.

3.9.2 Contractor identification and development

All contractors in Ethiopia are subject to national registration and classification which, on the basis of capacity, experience and resources of the contractor, defines the limits of contract value for which the contractor is eligible. EIIP would seek to develop (and/or create) SME 30

contractors in the middle levels of this classification system (Grades 5 to 7). Capacity 31

building would include contract management for both the contractors and contracting agencies (at state, woreda and kebele levels) with potential outsourcing design to small local consultants (for whom similar capacity-building support could be provided). This support would include procurement to ensure transparency, fairness, competition of process and accessibility by SMEs. This implies tailoring of values of contract packages and/or negotiated unit rates for contractor development and demonstration of EIIP interventions. 32

3.9.3 Technical training

Appropriate training would also be provided for relevant skills (many of which are marketable elsewhere, e.g. building works), including labour-based (LB) techniques and social and environmental issues. This approach would initially involve training of trainers and involvement of TVET institutions. Such support would also include provision of manuals and guidelines for stakeholders at different levels, including public sector institutions, trainers, consultants, contractors and mentors. For demonstration and training interventions, ILO would provide technical assistance and monitoring at all levels.

In Ethiopia, private contractors usually implement public (and private) sector infrastructure works (e.g. roads, 29

housing, WATSAN, social facilities such as health centres and schools) so that it is essential that these SME local contractors are enabled to function in this sector.

Grade 1 >ETB 20M; 2 <ETB 20M; 3 <ETB 15M; 4 <ETB 10M; 5 <ETB 5M; 6 <ETB 2.5M; 7 <ETB 1M; 8 <ETB 0.5M; 9 30

<ETB 0.25M; 10 <ETB 0.1M.

The logic behind these proposed grades is that the contractors at this level would be reasonably expected to 31

have adequate resources for timely payment of workers.

Contractual arrangements would be subject to full compliance with the appropriate procurement regulations 32

and procedures (national and ILO). 40


3.9.4 Community contracting

Experience of EIIP implementation has demonstrated approaches directly involving communities in the maintenance of an infrastructure directly identified by the community. This approach can empower communities and promote social cohesion, providing not only the infrastructure but also valuable experience in negotiation, organization, community mobilization and contracting. The degree of community involvement may vary depending on circumstances. The whole community, or a specific group within the community (e.g. youth), may be involved. However, this approach is likely to involve direct negotiation of the contract/community agreement, and care should be taken to ensure that this approach is a viable or realistic option. Also, the EIIP approach to providing an infrastructure that will be used by both refugee and host communities can unite both communities for the common good.

3.10 Other potential partners and donors

Potential partners and donors have been identified after visits to Somali, Benishangul-Gumuz, Tigray and Afar regional states and in consultation with other IFIs. Further meetings are being held with other IFIs active in the field of “forced displacement settings” and “labour markets” in Ethiopia to explore potential synergies, collaboration and cooperation. The proposed stakeholders’ workshop, tentatively programmed for October 2019 (for validation of overall findings and proposals for EIIP) is expected to be a forum for such advocacy and identification of other potential partners and donors, while during implementation further potential partnerships will be explored. 33

The validation workshop was held on 10 October 2019 and served its purpose.33

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Picture 5: Qoloji Refugee Camp, Somali Regional State ©ILO


4. Opportunities for EIIP partnerships and activities

4.1 Potential priority areas for introducing employment-intensive

investment approaches

There are three potential entry points for EIIP interventions, i.e. at the policy, institutional and project levels. Given that national policies in Ethiopia are generally conducive to the implementation of EIIP, it is suggested that in practical terms, EIIP under the PROSPECTS Partnership will concentrate upon institutional and project levels.

The institutional level involves capacity building, mainly at state and local levels for EIIP implementation for the public sector (state, woreda, kebele and community levels) and the private sector (local small-scale contractors and consultants).

The project level involves the demonstration of EIIP techniques, technical support, backstopping and mentoring (including employment creation, decent working conditions and OSH). 34

This two-pronged approach to the implementation of EIIP under the PROSPECTS Partnership activities is captured in the Theory of Change (TOC) below. The key narrative of the TOC is summarized in the Propositional Statement and Proposed Solution, i.e. “Access to employment and livelihoods has emerged as a bridge between humanitarian action and development cooperation, and the construction sector has proven absorption potential worldwide. EIIP has consistently demonstrated that investments in infrastructure can offer a win-win strategy for boosting economic, social and environmental impacts.” Thus, the use of EIIP labour-based construction activities produce short-term employment and increase capacities (by way of practical training in marketable skills) while the infrastructure produced or improved, facilitates increase economic activities, which generate multiplier effects on local employment and income generation.

4.2 Capacity building

Promotion of decent work and higher income levels is a key output of EIIP by way of, inter alia, capacity building, through practical technical training. This issue has also been discussed above (see 3.9 Contractors) and would be a major theme under the proposed EIIP component, targeting a range of activities in support of stakeholders at different levels. Such

Given the demonstration and advocacy potential of such activities, it is suggested that efforts be made to 34

identify and (as far as is practical) quantify EIIP employment benefits in the short and long term, i.e. direct employment during construction, operation and maintenance; indirect employment – backwards linkages (suppliers to construction activities); induced employment – forward linkages (paid employment leading to increased spending); and spin-off development impact (secondary employment resulting from improved or new infrastructure assets).

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capacity building would be based on needs assessments which would take into account 35

requirements, capacity gaps, potential markets (for skills) and absorption capacities.

Beneficiaries of expected EIIP capacity building would include public and private sectors, communities and workers (refugee and host communities). Capacity building activities would include training, coaching and mentoring of SME contractors, consultants, communities, staff of line agencies and workers. Coverage would obviously be tailored to be appropriate for individual target groups but would include budgeting, planning, pricing, procurement and bidding, contract management (including works implementation on site and technical construction issues), supervision, maintenance and operations, quality assurance, artisanal skills and reporting. Attention would be given to conditions of employment and safe working practices.

This approach would initially focus on training of trainers, followed by training of contractors in the regional states which would, in turn, be followed by practical demonstrations at selected sites, offering hands-on experience of the application of technical and organizational skills. In all cases, EIIP would work with and within the organizational structure of partner agencies in order to provide useful paid work to the un- (and under-)employed in host, IDP and refugee communities in provision of infrastructure of benefit to those communities, as well as to the wider public and private sectors which facilitate economic activity.

4.3 Demonstration of employment intensive works

At this stage, the introduction of demonstration works for the EIIP approach would involve the following activities:

Capacity building of local/regional institutions, trainers, contractors, consultants, communities and individuals (including training, coaching and mentoring of SME contractors, consultants, communities, staff of line agencies and workers in Somali Regional State);

Demonstration of EIIP approach to infrastructure provision and improvement (i.e. the proposed infrastructure interventions would be used as demonstration works in Year 1;

Establishment of partnerships (see also ‘Partnerships’ below).

Initial activities proposed would involve training of trainers using the facilities of ERA’s Ginchi Training Centre, with training to be carried out first at Ginchi, followed by training through

Capacity building is the key thrust of EIIP in support of promotion of decent work and higher income levels, 35

covering a broad range of activities to support different stakeholders through a variety of interactions at multiple levels and in various sectors. EIIP identifies capacity-building needs based on detailed assessments of identified requirements and capacity gaps. It takes into account absorption capacities, required standards and market demands. However, Needs Assessments would not necessarily have to be too detailed or time-consuming at this stage of introduction of EIIP activities and concepts.

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TVET institutions in regional states, together with practical on-site training at demonstration sites.

EIIP interventions for the first year of ILO activities under PROSPECTS have been identified as set out in the following table. After detailed screening of proposals, this identification has taken into account needs in the regional states visited, while seeking to leverage ILO’s long experience in the sector and its strong relationship with sector agencies in Ethiopia.

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Picture 6: Practical training in labour based technology. ©ILO


5. Risks for introducing employment-intensive investment approaches Risks focus on results, which in turn depend upon implementation challenges to EIIP activities that may constrain achievement of targets or cause unintended results. These risks are summarized below, together with additional risks identified in the PROSPECTS country vision note for a new partnership - between the Government of Netherlands, IFC, ILO, UNHCR, UNICEF and the WB.

Table 6: Risk matrix

Issue

Likelihood of occurrence

Potential impact

Mitigation measures Comments

Government commitment in doubt

L H

Government committed to assimilation of refugees and mitigation of impacts upon host communities.

Project design builds upon consultation with government project partners and stakeholders and is compliant with government policies and CDD approach.

Governance issues H H

Focused design and consultation with project partners and potential beneficiaries and stakeholders.

EIIP component proposed to be implemented in under-served areas of Ethiopia with limited institutional and implementation capacity.

Lack of community engagement experience and capacity (refugee, IDPs and host communities)

M HProject support to training, capacity development and community institutions.

Such support targeted on requisites for EIIP implementation – identification and prioritization of interventions, procurement, decent working conditions, OSH, community contracts, construction, supervision, maintenance and operation.

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Sustainability of infrastructure H M

EIIP interventions to support services delivery of benefit to target communities, which is also complementary to PROSPECTS activities of other partners (e.g. Netherlands Government, WB-DRDIP, UNHCR, UNICEF, IFC). Interventions in close coordination with sectoral agencies to ensure organization and management costs are included in annual budgets.

Sustainability is a perennial problem in most sectors (e.g. ERF has a funding deficit for road maintenance of ~40%). Limited mitigation can be provided by ensuring good quality of design and construction.

Institutional sustainability M H

EIIP support to institutions at state, woreda, kebele and community levels in engagement/consultation, planning and implementation of infrastructure using LB methods and livelihood prioritization.

EIIP component proposed to be implemented through existing institutions and national, state, woreda, kebele and community levels.

Environmental and/or social detriment

L M

Intervention to be scrutinized at design stage and during implementation for environmental and social dis-benefits (against specific checklist as appropriate for selected interventions).

The nature of works of EIIP interventions not expected to lead to detrimental environmental or social impacts.

Lack of coordination between partners, stakeholders and beneficiaries

M M

Close coordination between partners to PROSPECTS will be the starting point for similar coordination with implementation partners and stakeholders. EIIP is proposed to use existing systems for collaboration and coordination in host and camp communities.

EIIP will be operating in a complex environment of multiple public and private sector agencies and institutions at various levels, NGOs, IFIs, UN agencies, communities (host, IDP and refugee). In such an environment, consultation and communication are key activities

Intervention identification and design does not respond to local community needs

L H

CDD approach directly responds to expressed community needs, use of existing communication structures (i.e. WB/DRDIP – host communities, ARRA/UNHCR – camps)

The CDD approach depends upon community decision-making and should ensure fair distribution of limited resources and collective action and community responsibility.

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High = H; Medium = M; Low = L

Inadequate institutional capacity (state, woreda, kebele and community levels)

H M

EIIP support to institutions for planning, identification and implementation of EIIP component.

EIIP Procedures Manual to be produced and disseminated to partners and stakeholders (including procurement, contract/works administration, management and supervision).

Lack of contractors, consultants, trainers and other trainees

M H

Leveraging experience of URRAP in most regions of Ethiopia including sector institutions involved in roll-out and provisions implementation. Training of trainers will be an essential early component of proposed EIIP activities

Under RSDP IV, some 1000 SME contractors and 200 local consultants have already been trained under URRAP. Existing TVET institutions to be used to the maximum extent possible.

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6. Conclusions Infrastructure and community infrastructure needs in the settlement areas of refugees and IDPs in Somali, Benishangul-Gumuz, Afar and Tigray regional states, and potential EIIP demonstration interventions in Tigray and Somali regional states, have been identified. A shortlist of potential interventions has been drawn up from multiple identified needs in four states and has been subject to detailed screening, leading to proposed intervention locations and activities promoting decent work and higher income levels in Year 1 of EIIP implementation. These potential demonstration interventions directly respond to and/or are supportive of needs identified locally and by ARRA at the national level, i.e.


Urban roads in Kebribeyah town (cobblestones and surface water drainage) over an estimated period of 9 months. An expected workforce of 150 workers is to be drawn from refugee and host communities (the refugee camp is adjacent to the town)


An agricultural road (3 km) servicing the regional mango nursery, a high-potential agricultural area and road access to water source boreholes serving refugee and host communities in Tselemti woreda, Boroke (spot improvement approach involving construction of drainage structures and immediate approaches over an estimated period of 6 months. Expected workforce of 150 workers to be drawn from refugee and host communities – Adi-Harush and Mai-Aini.

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